Millions Obligated To State For Infrastructure Goes To Parishes 

Release Date: September 29, 2005
Release Number: 1603-046

» More Information on Louisiana Hurricane Katrina
» More Information on Louisiana Hurricane Rita

BATON ROUGE, La. -- To date more than $777 million in federal Public Assistance (PA) funds has been provided to the State of Louisiana by the Department of Homeland Security's Federal Emergency Management Agency (FEMA) to reimburse state agencies and local governments for costs incurred responding to Hurricane Katrina. Of the more than three-quarter billion, over $240 million has reached parishes devastated by recent hurricanes.

Orleans Parish has received $109 million; St. Bernard, $38.6 million; Jefferson, $17.5 million; St. Charles , $17 million and Plaquemines, $14.5 million. Lafayette Parish has received over $8 million, while Lafourche and St. Tammany Parishes have received around $7 million apiece.

So far, over 40 parishes statewide have started receiving public assistance funds from FEMA.

Obligating funds means FEMA has approved an assistance request from a state or local agency and allowed the funds to be transferred to the state's disaster account at the U.S. Treasury. The state is responsible for managing the flow of funds to applicants. Each applicant must request that the approved funds be drawn down from the account by the state and disbursed. FEMA's Public Assistance program funding is on a reimbursable basis. State agencies and local governments must keep documents to support each claim and certify how the funds were spent.

Huge costs were incurred by communities providing emergency protective measures for their citizens affected by Hurricane Katrina. In order to put needed funds in the hands of local emergency responders as quickly as possible, FEMA expedited approval of initial funding requests under the Public Assistance program. In working together with the state, who disburses the funds once approved, the amount of time it takes for agencies to receive the funds has been dramatically reduced.

Although the front end of the process has been streamlined, and funds have been expedited, FEMA will continue to work with applicants to fund additional reimbursable costs. Complete documentation will be required as part of the final review and oversight process of incurred eligible costs. FEMA is working closely with state finance officials to maintain a balance between the need for rapid response to emergency funding requests and sound financial oversight practices.

Normally, FEMA pays 75 percent of eligible costs and the state and/or applying agency is responsible for the remaining 25 percent. For emergency measures taken in the wake of Hurricane Katrina, FEMA is currently reimbursing 100 percent of all eligible costs.

Under FEMA's Public Assistance Program, the state, local governments and certain private non-profit organizations are eligible to receive help with emergency measures and the restoration of infrastructure. Aside from providing reimbursement for emergency work performed following the disaster, the PA Program will help repair and rebuild the basic facilities, services and installations needed for the functioning of local communities.

FEMA prepares the nation for all hazards and manages federal response and recovery efforts following any national incident. FEMA also initiates mitigation activities, trains first responders, works with state and local emergency managers, and manages the National Flood Insurance Program and the U.S. Fire Administration. FEMA became part of the U.S. Department of Homeland Security on March 1, 2003

Last Modified: Thursday, 29-Sep-2005 16:28:34